SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED June 1, 1997 COMMISSION FILE NUMBER 1-5960
CONCORD FABRICS INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 13-5673758
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
1359 Broadway, New York, New York 10018
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 760-0300
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. Yes X No .
2,155,706 shares of Registrant's Class A Common Stock, par value $.50
per share and 1,509,401 shares of Registrant's Class B Common Stock, par
value $.50 per share were outstanding as of July 1, 1997.
1 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 1, 1997
INDEX Page Number
PART I. Financial Information
Item 1. Financial Statements
Consolidated Statements of Income -
Thirty-Nine Weeks Ended June 1, 1997
(Unaudited) and June 2, 1996 (Unaudited) 3
Consolidated Balance Sheets - June 1, 1997
(Unaudited), and September 1, 1996 (Derived
from Audited Financial Statements) and
June 2, 1996 (Unaudited) 4-5
Consolidated Statements of Cash Flows -
Thirty-Nine Weeks Ended June 1, 1997
(Unaudited) and June 2, 1996 (Unaudited) 6
Notes to Consolidated Financial Statements
(Unaudited) 7-10
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 11-12
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 13
Signature Page 14
2 of 14 <PAGE>
<TABLE>
Item 1. Financial Statements
--------------------
<CAPTION> CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Note A)
For the Thirty-Nine Weeks Ended For the Thirteen Weeks Ended
------------------------------- ----------------------------
June 1, June 2, June 1, June 2,
1997 1996 1997 1996
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net Sales ..................... $78,845,460 $110,938,359 $25,972,205 $37,475,161
----------- ------------ ----------- -----------
Cost of Sales ................. 55,381,047 81,846,998 18,388,710 27,623,716
Merchandising Expenses ........ 5,308,159 7,509,889 1,702,323 2,391,927
Selling and Shipping Expenses . 6,992,389 9,300,785 2,205,840 3,121,792
General and Administrative
Expenses ................... 7,198,442 8,635,962 2,290,216 2,813,908
Interest Expense (Net) ........ 844,051 1,411,505 253,315 453,282
Restructuring Charge .......... -0- 750,000 -0- 750,000
----------- ------------ ----------- -----------
Total ................... $75,724,088 $109,455,139 $24,840,404 $37,154,625
----------- ------------ ----------- -----------
Earnings before income taxes .. 3,121,372 1,483,220 1,131,801 320,536
Income tax provision .......... 1,295,000 733,000 466,000 185,000
----------- ------------ ----------- -----------
Net Earnings .................. $ 1,826,372 $ 750,220 $ 665,801 $ 135,536
=========== ============ =========== ===========
Net Earnings per Common Share . $.50 $.21 $.18 $.04
=========== ============ =========== ===========
Weighted average number of shares
used in computing earnings
per Common Share ........... 3,660,418 3,625,591 3,665,107 3,627,442
=========== ============ =========== ===========
Dividend per Common Share ..... NONE NONE NONE NONE
=========== ============ =========== ===========
The attached notes are made a part hereof.
3 of 14
/TABLE
<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Note A)
September 1,
1996
(Derived from
June 1, Audited June 2,
1997 Financial 1996
A S S E T S (Unaudited) Statements) (Unaudited)
- ----------- ------------ ------------ ------------
Current Assets:
Cash and cash equivalents ..... $ 7,198,851 $ 9,743,024 $ 1,960,574
Held to maturity investments (at
cost plus accrued interest) 7,872,563 -0- -0-
Prepaid and refundable income
taxes ...................... 532,527 423,200 146,889
Accounts receivable (less
allowance for doubtful accounts
of $2,015,000 on June 1,
1997, $1,610,000 on September 1,
1996, and $1,855,000 on
June 2, 1996) .............. 20,476,371 27,097,106 28,817,907
Inventories (Note B) .......... 19,478,203 17,323,179 23,161,402
Prepaid expenses and other
current assets .............. 1,264,028 1,620,319 1,496,943
Deferred income taxes ......... 1,900,000 2,189,000 2,099,000
----------- ----------- -----------
Total Current Assets .......... $58,722,543 $58,395,828 $57,682,715
Property, plant and equipment
(at cost, less accumulated
depreciation and amortization of
$6,463,549 on June 1,
1997, $5,424,566 on September 1,
1996, and $6,055,687 on
June 2, 1996) ................. 7,711,854 8,117,040 8,257,505
Property and plant leased to others 1,927,252 2,041,372 2,079,412
Property, plant, & equipment held for sale -
at estimated disposal value
(Note J) ...................... 1,992,400 2,153,884 2,343,673
Other assets ..................... 2,626,663 2,456,758 2,420,197
----------- ----------- -----------
T O T A L .................. $72,980,712 $73,164,882 $72,783,502
=========== =========== ===========
The attached notes are made a part hereof.
4 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Note A)
September 1,
1996
(Derived from
June 1, Audited June 2,
1997 Financial 1996
L I A B I L I T I E S (Unaudited) Statements) (Unaudited)
- --------------------- ------------ ------------ ------------
Current Liabilities:
Accounts payable .............. $ 6,424,897 $ 6,932,477 $ 8,178,323
Accrued expenses and taxes .... 2,599,756 4,368,031 3,408,662
Income taxes payable .......... 190,000 -0- -0-
------------ ------------ ------------
Total Current Liabilities ..... $ 9,214,653 $11,300,508 $11,586,985
Notes payable - insurance
company (Note D) .............. 20,000,000 20,000,000 20,000,000
Deferred income taxes ............ 601,000 601,000 214,000
Other liabilities ................ 469,249 424,249 406,090
------------ ------------ ------------
Total Liabilities ............. $30,284,902 $32,325,757 $32,207,075
Commitments and contingencies ------------ ------------ ------------
(Note E)
S T O C K H O L D E R S ' E Q U I T Y
- --------------------------------------
Common stock: (Notes F & G)
Class A - $.50 par value
authorized 4,000,000 shares,
issued 2,155,706 shares at
June 1, 1997, 2,146,956
shares September 1, 1996
and 2,121,906 shares at
June 2, 1996 ............... 1,077,853 1,073,478 1,060,953
Class B - $.50 par value
authorized 4,000,000 shares,
issued 1,509,401 shares at
June 1, 1997, 1,509,401
shares at September 1, 1996
and 1,509,451 shares at
June 2, 1996 ............... 754,701 754,701 754,726
Additional paid-in capital ....... 9,192,061 9,166,123 9,103,623
Retained earnings ................ 31,671,195 29,844,823 29,657,125
----------- ----------- -----------
Total Stockholders' Equity .... $42,695,810 $40,839,125 $40,576,427
----------- ----------- -----------
T O T A L .................. $72,980,712 $73,164,882 $72,783,502
=========== =========== ===========
The attached notes are made a part hereof.
5 of 14<PAGE>
<TABLE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION> (Note A)
For the Thirty-Nine Weeks Ended
--------------------------------
June 1, June 2,
1997 1996
Cash flows from operating activities: ------------ ------------
<S> <C> <C>
Net earnings .................................... $ 1,826,372 $ 750,220
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization ............. 1,153,103 1,068,210
Deferred income tax ....................... 289,000 73,000
Provision for doubtful accounts ........... 465,300 630,000
Changes in assets:
Decrease (increase) in:
Accounts receivable ................. 6,155,435 (1,538,201)
Inventories ......................... (2,155,024) 910,024
Prepaid and refundable income taxes . (109,327) 1,904,111
Prepaid expenses and other
current assets .................... 220,165 855,460
Other assets ........................ (169,905) (40,371)
Changes in liabilities:
Increase (decrease) in:
Accounts payable .................... (507,580) (745,116)
Accrued expenses and taxes .......... (1,768,275) (1,961,413)
Income taxes payable ................ 190,000 -0-
Other liabilities ................... 45,000 45,000
------------ ------------
Net cash provided by operating activities: 5,634,264 1,950,924
Cash flows from investing activity:
Purchases of held to maturity securities ........ (7,736,437) -0-
Purchases of property, plant, and equipment ..... (633,797) (1,057,682)
Proceeds of sale of Washington Plant machinery
and equipment ................................. 161,484 656,327
------------ ------------
Net cash (used in) investing activities: ........... (8,208,750) (401,355)
Cash flows from financing activities:
(Decrease) in notes payable - bank .............. -0- (2,000,000)
Issuance of common stock (stock options exercised) 30,313 48,886
------------ ------------
Net cash provided by (used in) financing activities: 30,313 (1,951,114)
NET (DECREASE) IN CASH AND CASH EQUIVALENTS ........ (2,544,173) (401,545)
------------ ------------
Cash and cash equivalents - beginning of period .... 9,743,024 2,362,119
------------ ------------
CASH AND CASH EQUIVALENTS - END OF PERIOD .......... $ 7,198,851 $ 1,960,574
============ ============
The attached notes are made a part hereof.
6 of 14
/TABLE
<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT JUNE 1, 1997
(Unaudited)
Note A
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair representation have been included. Operating
results for the thirty-nine weeks ended June 1, 1997 are not necessarily
indicative of the results that may be expected for the fiscal year ending
August 31, 1997. These statements should be read in conjunction with the
financial statements and notes thereto included in Registrant's annual report
to shareholders and Form 10-K for the fiscal year ended September 1, 1996.
Note B - Inventories:
Inventories are summarized by categories as follows:
June 1, September 1, June 2,
1997 1996 1996
------------ ----------- ------------
Finished goods......... $11,827,192 $ 9,750,156 $13,034,839
Work-in-process........ 3,335,302 3,268,677 4,298,025
Greige goods and yarn.. 4,315,709 4,304,346 5,828,538
------------ ----------- ------------
Total............... $19,478,203 $17,323,179 $23,161,402
============ =========== ============
The foregoing inventory amounts at June 1, 1997 and June 2, 1996 were derived
from perpetual inventory records maintained by Registrant.
Note C - Notes Payable - Banks:
At June 1, 1997, Registrant was free of bank debt and had total unused bank
lines of credit aggregating $20,000,000.
Note D - Notes Payable - Insurance Company:
On November 30, 1994, the Registrant obtained a $20,000,000 loan from John
Hancock Mutual Life Insurance Company. This unsecured loan bears interest at
9.31% a per annum and is repayable in seven equal annual installments
commencing on November 30, 1998.
The loan agreement requires maintenance of certain financial ratios and
maintenance of tangible net worth of approximately $36,000,000. The
agreement also prohibits the pledging of assets and restricts dividends and
7 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT JUNE 1, 1997
(Unaudited)
Continued
redemptions of capital stock to $3,000,000 plus 50% of net earnings
subsequent to August 28, 1994; the cumulative amount available for such
payments aggregated approximately $3,530,000 at June 1, 1997.
Note E - Purchase Commitments:
At June 1, 1997, Registrant had outstanding commitments to purchase greige
goods aggregating $8,800,000. At June 2, 1996 outstanding purchase
commitments were approximately $5,700,000. None of Registrant's commitments
have a term greater than one year.
Note F - Common Stock:
The Class A and Class B shares principally differ as follows:
(1) The Class A shares have a 15% dividend preference and a 10% liquidation
preference with respect to the Class B shares.
(2) Holders of Class A shares are entitled to one vote a share whereas
holders of Class B shares are entitled to ten votes a share.
(3) Holders of Class A shares voting as a separate class are entitled to
elect 25% of Registrant's directors and holders of Class A shares and Class B
shares voting together are entitled to elect the remaining directors.
(4) Class B shares are convertible into Class A shares on the basis of one
share of Class A shares for each share of Class B shares; Class A shares
have no conversion rights.
Note G - Stock Options:
Pursuant to an Incentive Program adopted on January 10, 1989, awards (as
defined) may be granted to key employees of the Registrant up to a maximum of
500,000 shares of the Registrant's Class A common stock.
On January 10, 1989, options to purchase an aggregate of 150,000 shares of
the Registrant's Class A common stock at $3 a share (fair market value at
such date) were granted to three employees. The options are exercisable in
four annual installments commencing January 10, 1994 and expire ten years
from the date of grant.
On January 9, 1996, options to purchase an aggregate of 200,000 shares of the
Registrant's Class A common stock at $4.625 a share (fair market value at
such date) were granted to two employees. The options are exercisable in
8 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT JUNE 1, 1997
(Unaudited)
Continued
four annual installments commencing January 9, 1997 and expire ten years from
the date of the grant.
On January 9, 1996 options to purchase 5,000 shares of the Registrant's Class
A common stock at $4.625 (fair market value at such date) were granted to two
outside directors. On September 2, 1996, options to purchase an additional
5,000 shares of the Registrant's Class A common stock at $6.625 (fair market
value at such date) were granted to those directors.
On January 14, 1997, the Registrant granted an option to the Chairman of the
Board of Directors to purchase an aggregate of 70,000 shares of the
Registrant's Class A common stock at $7.0125 a share (110% of the fair market
value at such date). This option is exercisable in five annual installments
commencing January 14, 1998, and expires five years from the date of grant;
the Chairman was also granted an option to purchase 30,000 shares of the
Registrant's Class A common stock at $6.375 a share. This option is
exercisable in five annual installments commencing January 14, 1998 and
expires ten years from the date of grant.
Option activity for the thirty-nine weeks ended June 1, 1997 is summarized as
follows:
Options Outstanding
-------------------
Shares Available Number of
for Grant Shares Amount
Balance - September 1, 1996 .. 147,455* 261,250** $1,116,875
Thirty-Nine Weeks Ended
June 1, 1997:
Granted ...................(105,000) 105,000 715,250
Exercised ................. (8,750)*** (30,313)
Cancelled ................. -0- -0- -0-
--------- -------- -----------
Balance - June 1, 1997 ....... 42,455 357,500 $1,801,812
========= ======== ===========
* Revised to reflect amendments to stock option plan adopted January 14,
1997.
** Comprised of 56,250 shares at $3.00 per share and 205,000 shares at $4.625
per share.
*** Exercise price was $3.00 per share for 6,250 shares and $4.625 for 2,500
shares.
9 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT JUNE 1, 1997
(Unaudited)
Continued
In October 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Statements (SFAS) No. 123, "Accounting for Stock-Based
Compensation." This standard requires either the recognition or disclosure
of compensation expense based on the fair value of equity instruments granted
to employees. As permitted by SFAS No. 123, the Registrant has elected to
adopt the disclosure provisions of the standard in 1997 when required.
Note H - Earnings Per Share:
Earnings per share are computed by dividing net earnings by common shares
outstanding and common stock equivalents. Outstanding options did not have a
material dilutive effect on earnings per share for the thirteen and thirty-
nine week periods ended June 1, 1997 and June 2, 1996.
In February 1997, the FASB issued Statement No. 128 "Earnings per Share,"
which is required to be adopted in 1998. Implementation of Statement No.
128, which will require the Registrant to report "Basic Earnings per Share"
and "Diluted Earnings per Share," will not have a material impact on the
earnings per share amounts as currently reported by the Registrant.
Note I - Chino, California Facility:
In February 1994, the Registrant leased the land and building at the Chino,
California facility for a five year period at an annual net rental of
$297,000; the lessee was also granted the option to purchase the land and
building during the lease period for $2,900,000.
Note J - Property, Plant and Equipment Held for Sale:
In the fourth quarter of fiscal 1995 Registrant decided to dispose of its
Washington, Georgia dyeing and finishing plant and has been actively
searching for a buyer; manufacturing operations ceased October 6, 1995.
Registrant provided for estimated expenses during the disposition period in
its fiscal year ended September 3, 1995, and believes the provision remaining
as at June 1, 1997 is adequate. Registrant estimates that the net proceeds
of sale will approximate the facility's net book value.
10 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
JUNE 1, 1997
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
OPERATIONS - Thirty-Nine Weeks Ended June 1, 1997 Compared With Thirty-Nine
Weeks Ended June 2, 1996.
Fabric sales decreased by 28.9%. The decline was attributable to the planned
de-emphasis, originated in fiscal 1996, of the production of fabrics for sale
to the apparel trade. This resulted in lower unit sales as anticipated and a
7.6% decline in average selling prices.
Gross profit margin increased from 26.2% in fiscal 1996 to 29.8% in fiscal
1997 primarily due to Registrant's elimination of its less profitable product
ranges and the implementation of its strategy to focus on the more profitable
aspects of its business (Concord House and knitted fabrics).
Merchandising expenses declined by 29.3% as a result of a reduction in
personnel associated with the production of woven fabrics for the apparel
trade. As a percent of sales merchandising expenses were 6.7% of sales in
the 1997 period and 6.8% of sales in the 1996 period.
Selling and shipping expenses declined by 24.8% as a result of the decrease
in Registrant's sales. The decrease was less than the actual sales decrease
because some of Registrant's selling expenses do not vary with sales but
represent sales management costs which are more fixed in nature. In the 1997
period selling and shipping expenses were 8.9% of sales; in the 1996 period
they were 8.4% of sales.
General and administrative expenses declined by 16.6% as a result of a
reduction in personnel and related costs as Registrant's activities became
more focused. In the 1997 period general and administrative expenses were
9.1% of sales; in the 1996 period they were 7.8% of sales.
Interest expense declined by 40.2% as Registrant generated cash flow from its
planned reduction of business activity which stemmed from the elimination of
unprofitable product lines. Short term debt was eliminated and Registrant
generated interest income from cash invested in marketable securities.
Earnings before income taxes for the thirty-nine weeks of fiscal 1997 were
$3,121,000 compared with $1,483,000 for the thirty-nine weeks of fiscal 1996.
Net earnings were $1,826,000 for 1997 and $750,000 for 1996. Registrant's
1996 earnings were net of a $450,000 (after tax benefit) restructuring
charge.
OPERATIONS - Thirteen Weeks Ended June 1, 1997 Compared With Thirteen Weeks
Ended June 2, 1996.
Fabric sales decreased by 30.7%. The decline was attributable to the planned
de-emphasis, originated in fiscal 1996, of the production of fabrics for sale
to the apparel trade. This resulted in lower unit sales as anticipated and a
decline of 9.5% in average selling prices.
11 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
JUNE 1, 1997
Continued
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Gross profit margin increased from 26.3% in fiscal 1996 to 29.2% in fiscal
1997 primarily due to Registrant's elimination of its less profitable product
lines and the implementation of its strategy to focus on the more profitable
aspects of its business (Concord House and knitted fabrics).
Merchandising expenses declined by 28.8% as a result of a reduction in
personnel associated with the production of woven fabrics for the apparel
trade. Merchandising expenses were 6.6% of sales in the current period and
6.4% of sales in the prior year's period.
Selling and shipping expenses declined by 29.3% as a result of the decrease
in Registrant's sales. They were 8.5% of sales in the current period and
8.3% of sales in the prior year's period.
General and administrative expenses declined by 18.6% as a result of a
reduction in personnel and related costs as Registrant's activities became
more focused. General and administrative expenses were 8.8% of sales in the
current period and 7.5% of sales in the prior year's period.
Interest expense declined by 44.1% as Registrant generated cash flow from its
planned reduction of business activity which stemmed from the elimination of
unprofitable product ranges. Short term debt was eliminated and Registrant
generated interest income from cash invested in marketable securities.
Earnings before income taxes for the third quarter of fiscal 1997 were
$1,132,000 compared with $321,000 for the third quarter of fiscal 1996. Net
earnings were $666,000 for 1997 and $136,000 for 1996. Registrant's 1996 net
earnings were net of a $450,000 (after tax benefit) restructuring charge.
LIQUIDITY AND CAPITAL RESOURCES
During the thirty-nine weeks of fiscal 1997, Registrant's operations provided
$5,634,000 cash. $634,000 was used to acquire machinery and equipment. Cash
decreased by $2,544,000 during the period. Registrant purchased $7,736,000
of held to maturity securities all of which had terms of 270 days or less.
Working capital increased by $2,413,000 for the thirty-nine weeks ended June
1, 1997. Registrant's improved liquidity is attributable to the elimination
of certain product ranges and the resultant reduction in accounts receivable
and inventory. Registrant expects its lines of credit and cash flow from
operations to be adequate to finance operations and meet its cash
requirements for the foreseeable future.
12 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
FORM 10-Q
PART II
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) A report on Form 8-K was filed by
Registrant during the thirty-nine
weeks ended June 1, 1997 and is
incorporated by reference herein.
13 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
-------------------------------------
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CONCORD FABRICS INC.
---------------------------------
Registrant
Date: July 14, 1997 By /s/ Earl Kramer
Earl Kramer
President and Chief Executive
Officer
Date: July 14, 1997 By /s/ Martin Wolfson
Martin Wolfson
Senior Vice President-Treasurer
Chief Financial Officer
14 of 14<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
THIRD QUARTER AND THIRTY-NINE WEEKS ENDED FORM 10-Q AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO IT.
</LEGEND>
<CIK> 0000023249
<NAME> CONCORD FABRICS INC.
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS 3-MOS 3-MOS
<FISCAL-YEAR-END> AUG-31-1997 SEP-01-1996 AUG-31-1997 SEP-01-1996
<PERIOD-START> SEP-02-1996 SEP-04-1995 MAR-03-1997 MAR-04-1996
<PERIOD-END> JUN-01-1997 JUN-02-1996 JUN-01-1997 JUN-02-1996
<CASH> 7,198,851 1,960,574 7,198,851 1,960,574
<SECURITIES> 0 0 0 0
<RECEIVABLES> 20,476,371 28,817,907 20,476,371 28,817,907
<ALLOWANCES> 0 0 0 0
<INVENTORY> 19,478,203 23,161,402 19,478,203 23,161,402
<CURRENT-ASSETS> 58,722,543 57,682,715 58,722,543 57,682,715
<PP&E> 7,711,854 8,257,505 7,711,854 8,257,505
<DEPRECIATION> 0 0 0 0
<TOTAL-ASSETS> 72,980,712 72,783,502 72,980,712 72,783,502
<CURRENT-LIABILITIES> 9,214,653 11,586,985 9,214,653 11,586,985
<BONDS> 0 0 0 0
0 0 0 0
0 0 0 0
<COMMON> 1,832,554 1,815,679 1,832,554 1,815,679
<OTHER-SE> 0 0 0 0
<TOTAL-LIABILITY-AND-EQUITY> 72,980,712 72,783,502 72,980,712 72,783,502
<SALES> 78,845,460 110,938,359 25,972,205 37,475,161
<TOTAL-REVENUES> 78,845,460 110,938,359 25,972,205 37,475,161
<CGS> 55,381,047 81,846,998 18,388,710 27,623,716
<TOTAL-COSTS> 75,724,088 109,455,139 24,840,404 37,154,625
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 844,051 1,411,505 253,315 453,282
<INCOME-PRETAX> 3,121,372 1,483,220 1,131,801 320,536
<INCOME-TAX> 1,295,000 733,000 466,000 185,000
<INCOME-CONTINUING> 0 0 0 0
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 1,826,372 750,220 665,801 135,536
<EPS-PRIMARY> .50 .21 .18 .04
<EPS-DILUTED> .00 .00 .00 .00
</TABLE>
